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Abburi Company's manufacturing overhead is 60% of its total conversion costs. If direct labor is $52,000 and if direct materials are $28,000, the manufacturing overhead is:
Multiple Choice
$42,000
$78,000
$34,667
$120,000
Multiple Choice
The factory managers salary would be classified as an indirect cost of producing one unit of product.
A particular cost may be direct or indirect, depending on the cost object.
Whether a particular cost is classified as direct or indirect does not depend on the cost object.
A direct cost is one that can be easily traced to the particular cost object.

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